Is this really true? If Canadians are paying double for everything yet it's unit cost is the same, t

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But decided this thread focuses more on international and transborder competition / leakage. One thing repeated ad nauseam is that Canadian fares are so high because "taxes and fees are so high in Canada"
I know we cant compare the markets of Canada to Europe, but using the same aircraft and probably with more expensive fuel, airlines like FR can offer base fares 10-20% of the WS base fare on routes 2-3 times longer. OK , you dont get a bag etc etc, but I dont need one for a weekend. Yet behemoths like BA with all their legacy costs are able to compete on domestic easy car rental in canada fares with the perks included.
So as WS have made available all the surcharges, if these "government fees" were so awful, why not name and shame them? AC also list fees, yet they only split out $40 or $48, so some of these charges have to be in the base fare. The point is, the base fare is not $50 and the rest is all going to the government in some form or other. If it was, why not say so if you are going to name all the other above charges?
So the question is why are domestic fares are so expensive in Canada and is there really not room for an FR type operation in Canada? WS may be LCC in operation - are their costs really much higher than FR ? But they sure are not low cost. Everyone mentions JetsGo etc and the history is not good, but is there really no opportunity for someone to do it right?
I can see AC would be more expensive, they have huge costs, and even with a mega operating profit they still lose money. But WS it seems to be are just along for the ride, charging high fares, not because the majority goes to the government, but because there is no competition.
Its pretty clear, there are two "major" airlines serving Canada domestically, WestJet and AirCanada...I think I've answered the question. I lived in Canada during the earlier 2000s and WS was usually a lot cheaper than AC but I guess not so much anymore. I spent most of that time in Smithers, BC and Whitehorse. Smithers to YVR return was around $600 r/t and then tack on wherever you go from there while Whitehorse to YVR on AC was $700 or so although Air North was much more reasonable. The population of Canada in the 30-ish million range spread over the second largest country in the world spells doom for a market that is geographically big and populationally small (I just invented a new world). Add to that HUGE taxes and fees and you pretty much have the big picture.
It used to be the same in Australia with a very similar population density concentrated in 5 cities. With deregulation and greater competition, the fares are now lower than 20 years ago. I go to Oz on Thursday and none of my internal sectors, which are roughly the same duration as the OP's example easy car rental in canada are costing more than 100AUD. Go figure...
I think he is referring to taxes charged easy car rental in canada to the airline, not taxes charged to the passenger. Things like fuel taxes, or fees airlines must pay, up and and including the highest airport landing fees on the earth!
The Conference Board did a report on this last fall. It was about the Canada-U.S. market, but once you pull out U.S. imposed fees/taxes, the findings apply to structural differences between Canada and the U.S. generally, which can be exacerbated domestically.
The Conference Board found the reason to be "all of the above." Fees and taxes -- both broken out (you can see them when you're booking) and hidden (like fuel surcharge, airport rent -- hidden in the fare) are higher in the U.S. Even accounting for hidden fees and taxes though, base fares are higher.
Other cost differentials highlighted by the Conference Board were fuel, aircraft/asset ownership, airport costs ("due in large part to the policies to which airports are subject easy car rental in canada in each country") and navigation (the FAA is partially subsidized while Nav Canada covers 100% of costs with fees).
Not just for air fares. We have a protected telecom oligopoly that gives Canadians some of the highest telecom charges in the world despite having middle of the pack services, yielding our telcos easy car rental in canada some of the highest profits/yields in the world. Add to that, other protected sectors like setting quotas for the production of milk. The average family easy car rental in canada in Canada easily pays nearly double for milk compared to the USA. Lots of laws screwing over middle class Canadians everyday.
We generally don't think about aviation first because aviation has become so expensive that the middle class now treats aviation as an absolute luxury. Most only fly for work and maybe one annual vacation, if they are lucky. They whole concept of flying for the weekend, so normal to many an American or European would sound outrageous to the average Canadian, who think such jaunts are to be reserved for the 1%.
Of course there are no such binds on the companies themselves. The courts felt justified in letting Air Canada off the hook for what was previously considered a legal obligation to keep heavy maintenance jobs in Canada. And there's no legal obligation at all on any of our other protected sectors to retain any employment in Canada, with many now resorting to outsourcing through the backdoor.
Quoting easy car rental in canada YTZ ( Reply 9 ): Not just for air fares. We have a protected easy car rental in canada telecom oligopoly easy car rental in canada that gives Canadians some of the highest easy car rental in canada telecom charges in the world despite having middle of the pack services, yielding our telcos some of the highest profits/yields in the world. Add to that, other protected sectors like setting quotas for the production of milk. The average family in Canada easily pays nearly double for milk compared to the USA. Lots of laws screwing over middle class Canadians everyday.
Is this really true? If Canadians are paying double for everything yet it's unit cost is the same, there should be a ruling / corporate class of trillionaires, yet in practice it's still a more egalitarian society than the US. Where do all those extra profits end up?
The fare between YXU and YOW on a direct flight is $832 for a trip planned in May, on Jazz. No competition is the main problem. You need a market for competition and there may not be a market for this route but it is the one I will be taking.
Well if that was the case why do start up airlines keep failing in Canada. Why did RootsAir close? Harmony/HMY? CanJet scheduled? Greyhound Air? VistaJet? easy car rental in canada The list goes on and on... If competition is such a golden goose why aren't more new entrants succeeding?
The fare between YXU and YOW on a direct flight is $832 for a trip planned in May, on Jazz. No competition is the main problem. You need a market for competition and there may not be a market for this route but it is the one I will be taking.
I flew YLW - YYZ once at $1037/rtn tax in, since then I drove myself down to Bellingham, Seattle or Spokane and route myself as close to Detroit as possible, rent a car at the arriving airport and drive back up to Canada.
Canada has much lower corporate income easy car rental in canada taxes than the USA. What Canada has is high taxes on fuel. The rest I think is valid also. Canada has a population that is long and thin. This limits the ability for competitors. There is room only for 2 major airlines, some niche carriers and charter companies. Canada simply cannot support multiple airlines. Same is true in Australia. Both nations are long run duopolies.
I remember with Eagle, when we used to pull into Pearson, we would be surrounded by 10 people for our tiny RJ . Couldn't get a freakin thing done. I stopped bidding YYZ whenever possible. Awful station. They weren't AA employees, just a local company. Whole different mentality up there.
I just bought a ticket on AS for a SEA - YYJ trip later in the year. AS wanted $189.10 each way for the 98 mile, forty minute flight that avoids the Peace Arch border crossing and associated holdups .
Quoting brilondon ( Reply 11 ): The fare between YXU and YOW on a direct flight is $832 for a trip planned in May, on Jazz. No competition easy car rental in canada is the main problem. You need a market for competition and there may not be a market for this route but it is the one I will be taking.
I spent 6 months shuttling between YYZ -YYB (North Bay, Ont)... I typically paid between $550 and $1000, for a 37 minute flight. In fact, I just picked random dates in May and got fares ranging from $598 (Tango) to $1,228 (Latitude)!! AC has no competition on that route.
I compare that to other flights I have taken over the last few years ( YYZ - YYT , YYZ - MIA , YYZ - LHR , YYZ - CUN ). All substantially longer flights, and none as expensive as the 37 minute Latitude ticket on Jazz.
This is not true. In recent years they have reduced the landing fees in restructuring how they are charged to the airlines. Yes, they were very high but I thought that the landing fees were not as high as NRT .
Quoting YYZYYT ( Reply 18 ): I spent 6 months shuttling between YYZ -YYB (North Bay, Ont)... I typically easy car rental in canada paid between $550 and $1000, for a 37 minute flight. In fact, I just picked random dates in May and got fares ranging from $598 (Tango) to $1,228 (Latitude)!! AC has no competition on that route.
I compare that to other flights I have taken over the last few years ( YYZ - YYT , YYZ - MIA , YYZ - LHR , YYZ - CUN ). All substantially longer flights, and none as expensive as the 37 minute Latitude ticket on Jazz.
Not just for air fares. We have a protected telecom oligopoly that gives Canadians some of the highest telecom charges in the world despite having middle